Ukraine's attacks on Russian refinery infrastructure have triggered a serious crisis in the energy sector. Russia has decided to halt diesel exports from July 8 until the end of the month to meet domestic market needs.
Over the past year, Ukrainian attacks have targeted approximately 90 percent of Russia's refinery facilities. Even plants like the Omsk Refinery, located more than 3,000 kilometers from the Ukrainian border, were hit. As a result of these attacks, refining capacity has declined and gasoline production has fallen to a level that can meet only 65 percent of seasonal demand.
Due to the damage to refineries, Russia has been forced to import diesel from India, Kazakhstan, and Belarus. Domestically, inflation rose to 6 percent in early July.
The global impact of Russia's export halt was felt immediately. Global diesel supply fell by approximately 234,000 barrels per day. In the US, diesel prices rose by 11 percent to $154 per barrel.
Energy expert Dr. Mustafa el-Bazerkan stated that Europe would be most affected by Russia's move. Bazerkan warned that global inflationary pressure would increase further with this development.